The year 2022 was a turning point for all of us. OpenAI revolutionized the web content industry by introducing its GPT-3.5 neural network. The emergence of free access to the ChatGPT neural network and its open APIs (application programming interface — a set of mechanisms that allow two program codes to interact with each other) only accelerated the speed at which AI has integrated into all areas of our lives. Artificial intelligence has not passed by blockchain technology, either.

Blockchain technology has been gaining popularity since its inception in 2008, but as it has grown, so have the requirements for security, speed, and efficiency of the entire blockchain network. Throughout all these years of blockchain development, miners, which create new blocks and nodes that support the decentralized infrastructure of the network, have consistently served as the basis of the blockchain's functioning.

With the current trend toward eco-friendly technologies and improved efficiency, crypto enthusiasts are tasked with improving blockchain processes, making them more reliable and cost-effective using available technologies. At the same time, it is necessary to predict all possible scenarios and not destroy the ecosystem built over the years.

This is where Artificial Intelligence comes into play. Modern AI, as it stands, can be a powerful tool for optimizing computing and data processing. In this article, we will look at how AI can change the interaction with miners and nodes, what prospects it opens up, and what risks the process of its integration may involve.

What are miners and nodes? What kind of Artificial Intelligence is ChatGPT?

Before we start analyzing how AI will affect the blockchain, we need to understand what miners and nodes are and what role they play in the crypto ecosystem.

What is nodes

Nodes are computers connected to the blockchain network that store massive amounts of information and maintain its stable operation. Nodes perform different tasks depending on their type. These tasks can include verifying transactions, storing copies of blocks, and in some cases, participating in consensus. Each blockchain can have different types of nodes, depending on the need.

Let's take Ethereum, one of the two largest blockchain ecosystems, as an example. As of November 8, 2024, the Ethereum network has about 6,603 active nodes distributed across different countries (but it is worth noting that about 53.99% of the total number are located in the United States).

Let's compare full, light, and archive nodes

As in other systems, the structure of nodes is not homogeneous but is divided into types that have different functions according to the purpose of the application. Since the network must be stable, secure, and efficient, nodes are divided according to practical needs. In a classic network, there are 3 basic types of nodes:

• Full nodes are the foundation of the network. They store the history of the blockchain and verify and record transactions and blocks. Each full node stores a copy of the blockchain, transaction history, and the state of users' wallets.

• Light nodes download the minimum data required to verify transactions. Their main application is in scenarios where they are used on mobile devices or in cases where quick access to the network is required.

• Archive nodes (the so-called “states”) store information about intermediate states of the blockchain, not just its current version. They act as electronic archives used for analyzing and tracking wallet activity.

What are the miners

Miners are network nodes responsible for processing transactions. They are the main devices that process information in the blockchain and receive cryptocurrency as a reward. For example, as of November 5, 2024, the Bitcoin network processes approximately 465,286 transactions per day. The average amount of energy spent on Bitcoin mining per year is roughly equivalent to the annual energy consumption of an entire country, such as Argentina. They are used to confirm transactions and add new blocks to the blockchain, which makes the blockchain a distributed, decentralized, and attack-proof network. There are 2 main algorithms of blockchain reward:

Proof of Work (PoW)

The PoW algorithm requires miners to solve complex math problems (hashing) to add a new block to the blockchain. Once the miner finds the correct hash, they can add the new block to the blockchain and receive a reward in the form of cryptocurrency.

Proof of Stake (PoS)

The PoS algorithm does not require large computing power for mining. Instead, network participants “stake” (deposit) their cryptocurrencies in the network, and the more coins a user has in his or her account, the higher the probability that he or she will be selected for the validation of the next block. The reward in a PoS usually consists of cryptocurrency that participants deposit to validate blocks.

Artificial intelligence

No matter how advanced and perfect you think modern AI is, it is only at the first level of its potential development. The image generation and meaningful answers to text questions that we have today are just the result of machine learning. We are only at the first stage of AI development, and there are at least two more to go.

Artificial Narrow Intelligence (ANI)

The average user spends about 3–4 hours a day using AI-based services (search engines, social networks, GPS), and this number is growing every year. AI has long been tasked with processing huge amounts of data. But as smart as such AI is, it is also stupid. Even sophisticated systems like self-driving cars and ChatGPT are forms of narrow artificial intelligence. They can't act outside a predefined set of tasks, so they can't make decisions on their own.

Artificial general intelligence (AGI)

Artificial general intelligence, also known as “strong AI,” will already be capable of performing a wide range of intellectual tasks that human intelligence can perform. In 2023, more than 1,000 experts signed a petition in support of suspending the development of AI for risk assessment. If AI is developed, it allows the machine to make human-like decisions on its own. This raises new questions about ethics and security in the field of technology development.

Artificial superintelligence (AS)

Artificial superintelligence is predicted to be discovered immediately after the discovery of artificial intelligence. This type of AI will exceed all the capabilities of human intelligence while being able to learn itself.

Oxford University philosopher and artificial intelligence expert Nick Bostrom talks about this AI as follows:

“An intellect that is much smarter than the best human brains in practically every field, including scientific creativity, general wisdom and social skills.”

The impact of AI on mining and nodes

The integration of AI into mining and node operations will provide users with new tools to optimize and accelerate blockchain performance. AI is able to analyze huge amounts of information and respond to problems faster than humans can. Let's take a look at how AI is already affecting the blockchain.

Optimizing the mining process with AI

Mining efficiency is directly impacted by the optimization of computing resources. Using machine learning algorithms, you can improve mining profitability by modeling potential costs and revenues. Such optimization allows miners to choose the best time to process blocks, save resources, and increase productivity at each stage.

An excellent example of the use of AI to optimize mining is the case of HIVE Digital Technologies. The company managed to successfully integrate AI into the miners' system, which optimized their operations.  The company uses machine learning algorithms to monitor and control equipment in real-time, optimizing energy consumption and minimizing downtime. These algorithms assess the degree of load on the system, managing power consumption and maintaining a constant level of performance in different operating conditions.

HIVE was also able to successfully implement AI-based predictive analytics to estimate energy costs and mining complexity. This strategy makes it possible to plan an efficient schedule of operations, deciding when to start and when to pause miners to reduce costs. The result is increased operational efficiency by optimizing energy consumption and reducing equipment downtime.

AI and nodes: Efficiency and sustainability

The market already has many successful examples of AI integration into the mining and node ecosystem.

Hut 8 Mining, a provider of mining equipment and services, is already integrating artificial intelligence into its operations. In June 2024, Hut 8 announced an investment of $150 million in the development of a next-generation AI infrastructure to enhance its high-performance computing capabilities. Hut 8 Mining also announced that it has managed to reduce the energy consumption of its miners by 10% by integrating AI into them (although this is technically possible, most experts consider this statement to be a marketing ploy). This strategic move demonstrates the company's desire to use AI to improve operations.

As of today, no universally recognized system in the blockchain or cybersecurity sector uses AI to optimize processes.

However, there is a concept known as “Nodeguard”, which is a virtualized self-analyzing security approach designed for modern cloud data centers. Nodeguard uses Virtual Machine Introspection (VMI) monitoring primitives to detect and isolate virtual machines in multi-tenant virtualized cloud environments that are not working correctly (or are detected as malicious).

Forecasts for the future

Artificial intelligence integrated into the blockchain promises to increase the efficiency and security of mining and node operations. By optimizing the use of resources, AI can reduce energy consumption, lower operating costs, and lower environmental impact. In addition, integrating AI into nodes can improve security by accelerating data processing and responding quickly to network anomalies, protecting against attacks.

Drawing on examples from other industries, the potential of artificial intelligence for blockchain is obvious. In the security sector, AI allows for real-time face recognition, and in the energy sector, machine learning reduces industrial energy consumption — a similar optimization can be applied to miners. Future AI applications can fully automate blockchain tasks, such as verifying smart contracts and instantly confirming transactions, which will significantly increase network efficiency.

Among the key advantages of artificial intelligence in blockchain are high data processing performance, event prediction, and anomaly response. However, risks such as centralization and the vulnerability of self-learning algorithms need to be managed. A balanced, responsible integration of artificial intelligence can provide significant benefits to blockchain stability, security, and efficiency.